Record Food Prices Linked To Biofuels

The biofuels industry is being blamed for record food prices and high price volatility.

Earlier this month a report from the World Trade Organization and other international agencies

recommended that governments cut support for biofuels to ease that volatility.

On the heels of that report,

the U.S. Department of Agriculture issued its corn forecast;

it suggested that corn supplies will be very tight this year because bad weather has limited planting

and because the share of corn going to ethanol is increasing.

After the report, corn prices shot to record highs, reaching $8 a bushel.

Then on Friday, the Organization for Economic Cooperation and Development released a report

predicting that food prices will remain high for the next decade.

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